In vehicle financing, which option involves financing provided by the dealer for a vehicle?

• A. Bank loan option
• B. Dealership financing
• C. Leasing
• D. Cash purchase

Answer: (B)

Dealership financing is financing arranged directly through the dealership. The dealer either uses its own finance arm or partners with lenders to provide the loan for buying the vehicle. This option is convenient because you can get financing approval on the spot at the dealership and may encounter promotions or manufacturer-backed rates. It’s different from getting a loan from a bank or credit union (which would be bank financing) and from leasing (which is paying to use the vehicle for a term rather than paying to own it). It’s also not a cash purchase, where you pay the full price upfront.